Gold, silver fall on sluggish demand, global cues

Prices of both precious metals - gold and silver - fell in New Delhi on Friday. The fall can be blamed upon slackened demand at prevailing higher levels amid a weak global trend, according to traders.

While gold of 99.9% purity fell by Rs 360 to Rs 28,190 per 10 grams on reduced offtake by jewellery fabricators and industrial units.

Holdings in the largest bullion backed exchange-traded product dropped to the lowest level in more than four years, amid speculation that the Federal Reserve will curb stimulus.

Gold in Singapore,which normally set price trend on the domestic front, fell by 0.3 per cent to $1,382.06 an ounce and silver by 0.6 per cent to $21.73 an ounce.

In addtion, investors diverting their funds from bullion to rising equity also reduced the metal demand.

On the domestic front, gold of 99.5% purity fell by Rs 360 to Rs 27,990 per 10 grams. The metal had climbed by Rs 360 yesterday. Sovereigns followed suit and shed Rs 100 to Rs 24,300 per piece of eight grams.

Silver dropped by Rs 700 to Rs 44,000 per kg and weekly-based delivery by Rs 625 to Rs 43,285 per kg. The white metal had gained Rs 500 in the previous session.

Silver coins also plunged by Rs 1000 to Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.